Here’s What To Expect From Tata Motors’ Q2 2018 Earnings

by Trefis Team
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Tata Motors’ (NYSE:TTM) will announce its Q2 2018 results on November 9th 2017 and while unfavorable currency fluctuations are likely to impact the results negatively, strong sales over the quarter indicate that the company will post strong results and the solid performance of JLR (Jaguar Land Rover) will continue. According to our estimates, JLR accounts for more than 90% of Tata Motors’ valuation and we will be keenly watching the performance of this division in Q2 2018.

Click here to look at our detailed analysis for Tata Motors.

Below is a summary of Tata Motors’ global wholesales in Q2 2017

September was the best sales month for JLR in the U.S. since 2003, driven by demand for its newest SUV models – the Jaguar F-Pace and Range Rover Velar. Land Rover sales in the region were also the best September sales in the history of the brand. This momentum is likely to continue for the rest of the year.

JLR continued reporting strong retail sales in the quarter ending September 2017, driven primarily by sales increase in China and North America. Europe continues to remain a drag given the soft market conditions.

Tata Motors continues to invest significantly in the JLR brand and six new JLR models debuted at the motor show in Frankfurt. The company also announced that from 2020, all new JLR models will be available in electric versions.

In the domestic segment, Tata Motors is benefiting from the lower tax regime kicking off from July this year. This has led to a strong growth in both commercial and passenger vehicles in the domestic market. We expect the company to report solid results for the domestic segment in Q2 2018.

We will be closely watching the performance of JLR in Tata Motors’ Q2 2018 results and we expect the company to report strong results on the back of the solid performance of this segment.

Our price estimate for Tata Motors is $36 (higher than its current market price) and we may revise this estimate after these results.

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